Boy Scouts bankruptcy plan set for vote by abuse claimants
The Boy Scouts, based in
Despite the plan being sent out to abuse claimants for a vote, there are several issues involving
Here is a look at where the case stands:
DISCLOSURE STATEMENT
Following a hearing that stretched over two weeks, a judge on Thursday approved a revised disclosure statement that outlines and explains the Boy Scouts’ reorganization plan.
Approval of the disclosure statement was required before the
Among the issues discussed at the disclosure statement hearing were provisions for ensuring that ballots and informational packages are sent to all claimants, including men who are incarcerated, while protecting the privacy of those who do not want
The judge and attorneys also discussed provisions to ensure that law firms that represent multiple abuse claimants and want to submit “master ballots” on behalf of their clients prove they have obtained permission from each client who does not wish to submit a ballot himself.
THE PLAN
The plan calls for the Boys Scouts and its roughly 250 local councils to contribute up to
The plan also includes settlement agreements involving one of the Boy Scouts’ major insurers, The
Attorneys for the
COMPETING RECOMMENDATIONS
The official committee appointed by the
In a draft letter filed with the court, the nine abuse survivors on the committee said the plan is “grossly unfair,” and represents only a fraction of the settling parties’ potential liabilities and what they should and can pay.
According to the committee, a key flaw is that settlements with local Boy Scout councils would leave them with more than
Meanwhile, attorneys separately representing tens of thousands of abuse claimants have submitted their own letter urging abuse claimants to vote for the plan. They say it will result in billions of dollars in compensation for abuse survivors and represents the best possible outcome for them.
The letter was drafted by attorneys representing an ad hoc group called the
TALLYING THE VOTE
A key point of contention has been a plan provision allowing an abuse claimant to receive an “expedited distribution” payment of
Such payments are expected to be an attractive option for those who have filed false claims, claims that lack required information and may not survive the claims evaluation process, and claims that would be barred in nonbankruptcy lawsuits because of the passage of time.
Those who do not opt for the
Attorneys for the official committee representing abuse victims have expressed concern that people opting for the
“We’re going to know ... whether the votes of the survivors who choose the
CASE TIMELINE
With the judge’s approval of the disclosure statement, ballots and informational packages will be sent to more than 82,000 abuse claimants over the next two weeks. Ballots must be returned by
The judge has scheduled a hearing to begin on
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